Dec 12, 2012 4:30pm PST
billions of dollars of government bonds in its effort to keep interest rates low. pimco c.e.o. mohamed el-erian will join us. >> susie: and the legal marijuana business-- two states okaying it for recreational use. we talk with one company profiting from medical marijuana products. >> tom: that and more tonight on "n.b.r." >> susie: an historic move today by the federal reserve. fed chairman ben bernanke and other policy makers said they will keep their key interest rate near zero until the unemployment rate falls below 6.5% or inflation rises to 2.5%. now, this is the first time the fed has set a clear economic target for how long interest rates will stay at record lows. the surprise decision means the central bank will continue stimuting the economy by buying bonds. darren gersh explains the dramatic move. >> reporter: ben bernanke and his colleagues will no longer mark a date on the calendar for when they expect to begin raising interest rates. from now on, they'll make that call based on a target for the unemployment rate and inflation. >> it'll act to some extent as an automatic stab
Dec 12, 2012 7:00pm PST
, we turn now to mohamed el-erian, c.e.o. of pimco. >> susie: mohammed, great to see you. so you've had time to think about what the fed said. what is your take on this unprecedented move? is this a good thing? is this a bad thing for the economy and for the outlook going forward? >> my take is basically what is showing in the market today, which is to combine the words "unprecedented" "surprising" with unchanged markets. how do you do that? the analogy, susie, is look at the patient who is taking an experimental drug, that hasn't been clinically tested. professional investors like the idea that the fed is all in, and they like the idea that there is some drug out there that can help the economy. so they get excited about that. but at the same time, professional investors realize we're in totally unfamiliar territory. the operational modlities are complicated, and it has not worked in the past. so i reacto react as, you know what, this is neither good news or bad news. this is just a confirmation that the fed is all in. it doesn't speak to what is going to happen to equity prices on its
Dec 12, 2012 4:00pm PST
mohammed morsi granted himself sweeping powers to push through the draft constitution. a constitution that the critics claim cobol officer hard line islamic policy. gag palkot following it all from cairo and streaming now. greg? >> hey, shep. things are relatively quiet here in cairo right now. but they are going to get noisy again. supporters and opponentses of egyptian president mohammed morsi get ready for a referendum on that draft constitution. actually it's going to happen over the next two saturdays due to a shortage of judges who have to act as election monitors. one main judicial group is calling the document an insults. the opposition is very much involved in this now. they have branded the constitution as promise and noninclusive. they want their followers to vote no. but they will be up against it. morsi's muslim brotherhood party has a good ground game, an excellent grassroots network and calling for rallies outside of mosques on friday. and they also play hard ball. a national unity meeting planned for wednesday was canceled. we were told 'cause morsi didn't want to show
Dec 13, 2012 6:00am PST
constitution. there are signs of trouble. the mohammed morsi's brother food is coming out, and they are mobilizing 120,000 troops during the different ways. supporters of the president say they are just defending the gains of the revolution, bill. bill: you know, who is going to win? i think everybody is watching that from around the world, including right where you are in cairo, and which way this vote will go. what is your sense after talking to people there, greg? >> reporter: most analysts we've heard from, we've seen say that president mohammed morsi constitution should pass maybe by a big margin. his muslim brotherhood party is just too well organized. they are involved in a strenuous get out the vote effort and some say there could be fraud involved with the vote. voting is going on at egyptian embassies around the world. muslim brotherhood operatives we are told busy there too helping at that vote. there could be another factor behind this constitution going forward, the folks here are just tired. it has been nearly two years since we were first here seeing the beg
Dec 13, 2012 2:00am PST
in the street when he tried to force this referendum as quickly as did he? >> mohamed morsi, he may be a very good engineer and he might have done very well in california where he was a student of engineering. but he's not a student of egyptian history and did he not gauge the temperament of these people. they brought down one pharaoh and they were not looking for another pharaoh. >> eliot: quickly. do you think he learned that lesson. >> he has learned that lesson. he appears to be a chastened man, and there will be a vote in the next week or so. >> eliot: thank you for your wisdom. >> thank you. >> eliot: it is not just unions under attack in michigan. it's also the unlikely local in the g.o.p.'s continuing war on women. that's next. i'll be joined by the attorney general in new york who has set out to she had light shed light on thehehehehehehehehehehehehehehehehehehehehehehehehehehehehe on to me now? you know the the kind of guys that do reverse mortgage commercials? those type. those types are coming on to me all the time now. >>> she get's the comedians laughing... >>>that hilarious.
Dec 13, 2012 6:00am EST
mohammed al ariane has probably been more of a proponent of the new normal. i don't know whether that's a pimco idea, the firm that pimco came up with following the fiscal crisis -- not the fiscal -- financial crisis. if you still believe that, what if we never get to 6.5%. >> well, hi, joe. it's great to see you. you're exactly right. just a month ago chairman bernanke for the first time acknowledged that the u.s. has structurally lower economic growth. but we've been calling the new normal for the last few years. and you're exactly right. that means the fed, if you combine that with yesterday's announcement, that means the fed is going to be exceptionally easy for a long time, and that it could be a couple years or could be three, four years, maybe even longer, because unemployment is now structurally higher. we hope it's 6.5% is not the new naru, the new minimum unemployment. certainly it is increasing. the longer people stay unemployed the more structural it becomes. the fed is really in a box here. they're trying to engineer financial market outcomes. trying to raise the prices o
Dec 13, 2012 12:00am PST
of government bonds in its effort to keep interest rates low. pimco c.e.o. mohamed el-erian will join us. >> susie: and the legal marijuana business-- two states okaying it for recreational use. we talk with one company profiting from medical marijuana products.
Dec 13, 2012 1:00pm EST
president mohammed morsi's allegiances are as uncertain as his grip on power. under a foreign aid deal signed in 2010, when morsi's u.s. friendly predecessor hosni mubarak was in charge, the u.s. is giving the -- we're giving the plains to egypt -- the planes to egypt's air force. which already has more than 200 of the aircraft. the first four jets are to be delivered beginning january 22, a source at the naval air base in fort worth where the planes had been undergoing testing told foxnews.com. but the $213 million gift is raising questions on capitol hill. morsi is under fire for. the article gos on, buchanan, who recently called for ening foreign aid to egypt altogether said the muslim brother-backed morsi government has been sending increasingly troubled messages, or signals, to washington and giving it state of the art fighter jets is a dangerous idea. he's quoted as saying, american tax dollars must not be used to aid and abet any dictatorial regime that stands with terrorists. representative thornberry of texas, vice chairman of the armed services committee said eyipt is a wild